Hey traders,
At the end of the day, there are no guarantees in the stock market.
But here’s something to think about: When a stock has been steadily trending higher for months, the odds tend to be in your favor that it will continue along the same path.
Take PLTR, for example.
This is a daily chart of PLTR over the past six months. What do you notice?
For the most part, PLTR has been gently bouncing off its short-term 20-day trendline.
Sure, about four months ago, it dipped a little further and bounced off its long-term 200-day trendline, but other than that, it’s been a steady, upward march.
And look what happened just recently. PLTR popped up, rocketing away from that short-term trendline. Now, what’s happening?
It’s starting to come back down toward the green trendline.
Does that mean PLTR is done for? Is the run over?
Not at all. While nothing is guaranteed in trading, this is where probabilities come into play.
And the high-probability event right now is that PLTR will come back down, touch its short-term trendline around $66 or $67, and then bounce higher.
I don’t have a crystal ball, and I’m no psychic. But I’ve seen this same story play out over and over again in trending stocks.
When you’re following a strong trend, you’re not gambling.
You’re simply playing the odds, and the odds tell us that PLTR is likely to keep following the pattern it’s been on for six months.
Here’s what I want you to do:
Put PLTR on your watchlist. You don’t even have to risk a penny — just watch it.
See if it comes down to touch that $66 or $67 level and then bounce higher over the next week or so.
If you’ve been feeling like trading is risky or unpredictable, start paying attention to charts like this.
When you start to see the power of trending stocks, trading becomes a whole lot less intimidating.
It’s not about taking wild guesses. It’s about spotting the patterns, recognizing the trends, and placing trades based on high-probability setups.
That’s how you trade smart.
Trade well,
Jack Carter
